The pound headed for its biggest monthly decline versus the dollar since October as Brexit talks between the U.K. and the European Union, alongside an underwhelming economic outlook, kept the currency pressured.Sterling was on track for its fourth consecutive month of losses versus the euro. Comments from Bank of England policy maker Michael Saunders, that a modest interest-rate increase was warranted, did little to support the British currency, which weakened against 13 of its 16 major peers Thursday.Political uncertainty in the U.K. also limited gains in sterling with U.K. Prime Minister Theresa May’s future coming under increased scrutiny after the Conservative Party’s poor performance in the June snap elections. While May said she will still run for re-election, in an interview to ITV in Kyoto, Japan, her own lawmakers doubted her prospects.
Source: Brexit-Hit Pound Set for Worst Month Versus Dollar Since October – Bloomberg
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Craig Erlam
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